have demanded either direct or indirect industrial compensation in return for defense purchases that are called "offsets." some governments want their domestic industry to build and support the weapons that will serve under their flag. others want economic development -- paper mills, fish farms, tourist projects, and, increasingly, investment in the training, education and health sectors. to defense contractors, offsets are a necessary evil in a competitive international market. but many now demand their economies receive 70% or more of the value of a given contract, worrying executives who fear they may not be able to deliver on all those accumulated promises -- projected to top $500 billion by 2017, 60% shouldered by american firms. e right to worry. some of these schemes have proven costly failures. companies and governments bear blame: governments for making increasingly unrealistic demands and industry for agreeing to them. needed are global offset rules to establish precisely what constitutes acceptable or unreasonable industrial-compensation packages.